Order

WHEREAS on December 14, 2020, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of By-law No. 1 in respect of a disciplinary proceeding commenced against Marja Grobbink Harmer (the “Respondent”);

AND WHEREAS between October 19, 2021 and October 22, 2021, a hearing on the merits was conducted before a panel of the Prairie Regional Council of the MFDA (the “Hearing Panel”) via videoconference;

AND WHEREAS the Hearing Panel considered the evidence and submissions presented by enforcement counsel for MFDA Staff and the Respondent;

AND WHEREAS on March 22, 2022, the Hearing Panel found that the Respondent had engaged in the following misconduct:

1. Between June 2013 and February 2017, the Respondent engaged in personal financial dealings with clients by:
   1. jointly investing with clients in real estate investments through a company that she owned or operated; or
   2. opening and maintaining a joint bank account with clients relating to real estate investments;

   which gave rise to a conflict or potential conflict of interest that she failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the policies and procedures of the Member and MFDA Rules 2.1.4, 2.1.1, 2.5.1 and 1.1.2;

2. Between June 2013 and February 2017, the Respondent engaged in securities related business that was not carried on for the account or through the facilities of the Member, when she solicited, recommended, sold or facilitated the sale of investments by clients in real estate investments, contrary to MFDA Rules 1.1.1 and 2.1.1;
3. Between June 2013 and February 2017, the Respondent engaged in outside business activities that were not disclosed to or approved by the Member when she:
   1. solicited, recommended, sold or facilitated the sale of investment by clients in real estate investments;
   2. incorporated companies or served as the President or Director of the companies; or
   3. became an independent distributor for a skin care company;

   contrary to the Member’s policies and procedures and MFDA Rules 1.2.1(c) (now 1.3.2), 2.1.1, 2.5.1 and 1.1.2;

4. Between December 2013 and February 2017, the Respondent engaged in securities related business that was not carried on for the account or through the facilities of the Member, by recommending, selling or facilitating the sale of investment in exempt market or other investment products to clients, contrary to the Member’s policies and procedures and MFDA Rules 1.1.1, 1.1.2, 2.1.1, and 2.5.1; and
5. Commencing in July 2019, the Respondent failed to cooperate with an investigation by MFDA Staff into her conduct, contrary to section 22.1 of MFDA By-Law No. 1;

AND WHEREAS on July 6, 2022, the Hearing Panel considered the evidence and submissions presented by enforcement counsel for MFDA Staff and the Respondent with respect to penalty;

IT IS HEREBY ORDERED THAT:

1. The Respondent is permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member, pursuant to section 24.1.1(e) of the MFDA By-law No. 1;
2. The Respondent shall pay a fine in the amount of $525,000, pursuant to s. 24.1.1(b) of MFDA By-law No.1;
3. The Respondent shall pay costs in the amount of $20,000, pursuant to s. 24.2 of MFDA By-law No. 1; and
4. If at any time a non-party to this proceeding, with the exception of the bodies set out in section 23 of MFDA By-law No. 1, requests production of or access to exhibits in this proceeding that contain personal information as defined by the MFDA Privacy Policy, then the MFDA Corporate Secretary shall not provide copies of or access to the requested exhibits to the non-party without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.